Sugarmade Comments on California's First Month of Recreational Cannabis Legalization Still Bottlenecks But Plays Well Into Sugarmade's Corporate Initiatives
City of Industry, CA -- February 15, 2018 -- InvestorsHub NewsWire -- Sugarmade, Inc., (OTC:SGMD) one of the largest publicly traded cannabis-related hydroponics supply companies, today commented on the state of affairs relative to the first month of recreational legalization of cannabis in California.
Mr. Jimmy Chan, CEO, commented, "Our view is that the first month of recreational legalization in California went rather well, but there are clearly still bottlenecks to be worked out. However, we believe the phased in approach adopted by California regulators is playing well into our corporate business plan, as we continue to grow our facilities and staff to prepare for significant growth and to meet the coming demand, as more licenses are issued."
The California market is still experiencing issues with local licensing. This local licensing is required before state licenses can be granted. Some local jurisdictions have been relatively slow to install licensing policies. For example, in Humboldt County, which is the heart of the Emerald Triangle and one of the most important cannabis cultivation areas in the world, only 90 local cultivation permits have been issued out of approximately 2,500 applications. Many other local jurisdictions have similar issuance statistics. These delays are occurring at a time when dispensaries are seeing huge increases in traffic. While many dispensaries serviced only a few dozen customers each day during 2017, it is currently not uncommon for dispensers to have long lines and to service over 1,000 customers per day. Sugarmade believes there is even more demand than is represented by these long lines, as many would be customers are discouraged from even attempting to purchase cannabis products.
Mr. Chan continued, "While there is skyrocketing demand, there are still a relatively low number of dispensaries, cultivators and other cannabis operators that are actually licensed. While inconvenient for cannabis customers who forced to wait in lines that are often around the block, we believe this bodes well for our business throughout 2018 and into 2019. As more cultivators are granted licenses, these entities will need to purchase cultivation supplies. We feel this puts our Company in a very good position.
